‘Tis the season to release half-year results, and as predicted, not everyone is happy with the findings.
In particular, Low-cost airline Norwegian has openly said it is not happy about the 2017 results.
In total, Norwegian made a net loss of 300m kroner ($49m) in 2017.
Personally, we’d be stoked with this kind of money, but that’s neither here nor there.
Speaking on the results, Norwegian said: “The airline industry is undergoing a challenging time as a consequence of Brexit and strong competition.”
Bjorn Kjos, Norwegian’s chief executive, said: “We are not at all satisfied with the 2017 results.
“However, the year was also characterised by global expansion driven by new routes, high load factors, and continued fleet renewal.
“Our major global expansion reaches its peak in the second half of 2018 when 32 of our 42 Dreamliners on order will have been put into service.”
According to The Independent, analyst Bjorn Fehrm of Leeham News and Comment said before the results were released: “A fast expansion costs money.
“This is fine if done by a company with a solid balance sheet and enough cash reserves. Norwegian has neither.”
The airline added: “Norwegian is far better positioned for 2018, with stronger bookings, a growing network of intercontinental routes complementing our vast European network and not least, a better staffing situation.”
“Future demand is dependent on sustained consumer and business confidence in the company’s key markets.”
In June of last year, Norwegian was voted Best Low-Cost Carrier in Europe by SkyTrax.
Hopefully, the airline can pull itself out of this slump.